Some 10 lakh workers, who are employed in around 1,200 subcontracting ready-made garment factories, are still facing uncertainties in getting their salaries and bonus before Eid as the factory owners are now facing fund shortage due to order crisis.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), there are 1,200 subcontracting RMG factory in the country employing over 10 lakh workers.
Among the subcontracting factories, 800 are fully depend on subcontracting job while rest of the 400 are directly export-oriented factories, which also do subcontract job when they lack work orders.
The subcontracting factories cut and make garments in contract and are paid off for that, which is also known as cutting and making (CM) charge.
I have got my salary of the last month on Thursday last, which has become a usual scenario for us as it is happening every month, Ahsan, an operator at a subcontracting factory at Badda in the capital, told the Dhaka Tribune.
“We may get only bonus before Eid as the factory has not enough funds to pay the monthly salary,’’ said Ahsan quoting a factory official.
After the Rana Plaza incident, which killed 1,135 workers and injured over 2,500 last year, global buyers have become more cautious about workers’ safety and also imposed conditions on subcontracting.
According to a BGMEA source, factory owners, especially the actual subcontracting factory owners, are facing financial crisis due to lack of enough work orders.
”Subcontracting factories may face problems in paying the workers’ wages and bonus in due time as they are now facing order shortage, which put them in fund crises,” BGMEA vice- president Shahidullah Azim told the Dhaka Tribune.
“ We have urged the finance minister to order the banks to pay us fund only for paying bonus and salary before Eid, which could be adjusted after the Eid, when they received funds from the buyers,” said Azim.
Azim also noted that May-August is a lean time for the country’s RMG sector, which created shortage in work orders but it would be over soon.
“After the implementation of new wage structure, subcontracting factories are suffering fund shortage badly as the lack of enough work orders make the situation worse,” a subcontracting factory owner, told the Dhaka Tribune, who preferred not to be named.
The problem can be resolved only if the buyers allow us subcontracting, increase CM charge and put more order in Bangladesh, he added.
Currently, the subcontracting factories are not allowed to perform the job for the supplier without permission of the respective buyers.
“We have information that the subcontracting factory owners are facing problems in managing funds to pay the workers’ dues before Eid,” said Rony.
He also urged the government and the BGMEA to take necessary steps to avert any unrest in the apparel industry.